Oceanic Pharmachem: Making HR the Centre of its Turnaround Strategy
Oceanic Pharmachem Private Limited (OPPL) understands that giving HR due diligence results in investment benefits rather than cost implications.
In a challenging economic environment, every part of the organisation has to be examined to determine which areas can quickly be improved and made more efficient. In the majority of these cases, HR is not given the same priority as finance or operations, which can result in potential disadvantage to the organisation.
Financially-focused companies often underestimate the importance of stabilising key employees during difficult times. The implications of not involving strategic HR and not reviewing the human capital in a turnaround situation, are massive.
When a business is preparing for a makeover, financials are often on top of the agenda – reduction of costs and preparation of financial reviews. The reality is that the actual cost increases due to not considering HR at such critical stages. Some of the potential pitfalls, if an objective HR policy isn’t involved at the outset, are:
1. Failure to identify key employees and key ‘problem’ employees early enough
2. Ineffective people management resulting in disengagement of employees that should be retained
To mitigate this risk, the following aspects of HR should be reviewed as a minimum:
1. Review of HR policies and processes, then steps taken as promptly as possible to cover any gaps
2. Focus on Performance management and staff development
3. Analysis of organisation culture and degree of ‘fit’ of employees with the company
4. Review of reward structure, salary appraisals, overtime payments, ‘ad hoc’ awards
All good HR processes help companies understand how to identify and retain key individual drivers of the business’s future success, and help in providing senior management with the tools to manage employees’ fears, anxieties and expectations through all the turmoil inevitable in corporate world.
Moreover, the issues of retention, motivation and integration of the key staff, including senior staff or uniquely skilled junior staff, will be critically and essentially understood.
Managing the emotions, expectations and retention plans for all company staff is often more crucial than any of the cost savings or financial engineering involved in a true, lasting turnaround.